$BTC key moment, longer consolidation or bull run? #crypto
Newsletter 24/05
MARKET ANALYSIS
Key levels
Short term
Supports—> S1: 7500 & S2: 7000
Resistances—> R1: 8000 & R2: 8300
Medium/Long term
Supports—> S3: 6800 & S4: 6400
Resistances—> R3: 8400 & R4: 8600
Potential scenario
BTC/USD is making a healthy consolidation. Now we should wonder, did the consolidation process end at $7,000 or can we expect further falls? Since it reached its 10 months high at $8,400, the price created a bearish channel. At the moment, S1 is holding the price and R1 at $8,000 is the main resistance. If the price cannot break R1 during the next two days, we can expect a longer consolidation process. If it breaks it, the bull run is likely to continue.
TA comment
In case the price breaks R1, the bearish channel that started 8 days ago will be broken and further price increases are likely to take place. If it goes above R2, Bitcoin will make a new 10 months high, having a big potential to keep increasing. As we can see in the chart, between R1 and R2 there is a difference of 4%. By creating a strategy that includes the indicator Percent Change, you can automate buys if BTC rises over 4%, then taking advantage of the bullish potential of that breakout.
Pattern
The price is currently testing the resistance R1 at $8,000. At this resistance it is possible to spot the pattern Hanging Man, which is a bearish reversal pattern. It is represented during an upwards trend, that in this case is a short-term upward trend, and as a candle with a long upper wick and a short body at the bottom. By automating this pattern, you would include a sell signal in your strategy when it is spotted by our pattern recognition system.
--CRYPTOHOPPER--
MARKET ANALYSIS
Key levels
Short term
Supports—> S1: 7500 & S2: 7000
Resistances—> R1: 8000 & R2: 8300
Medium/Long term
Supports—> S3: 6800 & S4: 6400
Resistances—> R3: 8400 & R4: 8600
Potential scenario
BTC/USD is making a healthy consolidation. Now we should wonder, did the consolidation process end at $7,000 or can we expect further falls? Since it reached its 10 months high at $8,400, the price created a bearish channel. At the moment, S1 is holding the price and R1 at $8,000 is the main resistance. If the price cannot break R1 during the next two days, we can expect a longer consolidation process. If it breaks it, the bull run is likely to continue.
TA comment
In case the price breaks R1, the bearish channel that started 8 days ago will be broken and further price increases are likely to take place. If it goes above R2, Bitcoin will make a new 10 months high, having a big potential to keep increasing. As we can see in the chart, between R1 and R2 there is a difference of 4%. By creating a strategy that includes the indicator Percent Change, you can automate buys if BTC rises over 4%, then taking advantage of the bullish potential of that breakout.
Pattern
The price is currently testing the resistance R1 at $8,000. At this resistance it is possible to spot the pattern Hanging Man, which is a bearish reversal pattern. It is represented during an upwards trend, that in this case is a short-term upward trend, and as a candle with a long upper wick and a short body at the bottom. By automating this pattern, you would include a sell signal in your strategy when it is spotted by our pattern recognition system.
--CRYPTOHOPPER--
Bình luận:
Bitcoin having a short-term bearish channel that could be the consolidation process.
Bình luận:
As said in the TA comment section, by using the indicator Percent Change and setting and increase above 4%, so breaking R, the bot would have automatically bought BTC. Therefore opening long positions in the breakout and getting around 350 points in returns.